The only problem, in my view, is that he attacks the straw man of IBD. I have no use for them -- for the record -- but what isn't mentioned is that this company has become an institutional favorite -- both buy-side & sell-side.
Look at the institutions which own it in size -- they are WAY more knowledgable about banks and bank stocks than someone who's probably a short in pain.
The giveaway is the kind of indiscriminate bashing -- WSBK is the smallest "gold chip" you'll find -- yes, that's what allows a company to sell (comfortably) at way higher than avg. ratios.... Formulaic investing is a tremendous way to go broke and be able to say, somehow, that you were right and the market was wrong.
If you share my sense that that's right up there with tax resistance as self-sacrificing, join me as a comfortable long -- at $30 or so, CCBI WILL! be in tulip territory, but not much before then!
hi lemon. obviously you are new to this board and don't get the difference between analysis and beer and peanut "bashing."
the farm league quality and lack of independence of historical and recent analyst (sell side)coverage, composition of pocket instituional holders, longstanding and noteworthy absence of traditional thrift/bank ("buy side") investors, and the now m.i.a. peanut short "bashers" have all been discussed at length on this board.
if you had read the brief history of this board, you'd know there are several very bright and industry knowledgeable posters here. you'd grip that i wasn't "attacking" anyone, and you'd likely know a great deal more about banking and risk management than your post last night elucidates.
fyi, assuming you won't review the board history, i am probably the furthest removed from "formulaic" investing of anyone you discuss markets with; it seems your long thesis here and at wilshire focuses on growth and momentum investing in a sector where overline growth is available only in restricted markets, or to those willing to take credit risks and pricing that substantive, long-term viable players won't chase. incidently, those same banks and thrifts are the ones the quality analysts and buy side firms tend to be in and out of on the opposite side of sector bets made by the "momentum" guys. you know, the "growth/momentum" funds that had 50-70% drops back in 2000 and 2001?
I'm sure you ARE well-informed -- even what I perceived to be a post with a hidden agenda (your last one) left me in little doubt about that.... However, I still believe that your putdown of the investors & analysts implying that CCBI is not wildly over-rated -- far from it, that it represents a good buy at these levels -- is unbearably superficial. I'm not in awe of analysts, but THB (I believe those are its initials) IS a long-term, long-time, well-inf'd bank stock player; look what their position was like as of 3/31 and then 6/30. Ditto, FBR.
Growth is worth less than crazies think and more than folks like yourself give it. Banks buy earnings and growth, and Calif. is different, not just in entertainment and wine. That is, both in-state predators and out-of-state ones don't apply Connecticut thinking (and rightly so) when they appraise the worth of a business like CCBI's.
Again, your post (with a hostile, defensive edge) leaves me very much in doubt as to your motivation and objectivity -- perhaps unfairly, I'll certainly admit.
If you either quit on CCBI at $15 or have shorted it since, you're probably doin' a fair share of, "It ain't fair, it ain't right." ... Maybe, time will vindicate you; I'm VERY comfortable betting the other way